Top Performing Mutual Funds of 2018

The Sensex return this year is 6.97% and Nifty gave a 4% return. The NSE Midcap and NSE Small cap have fallen by 11.25% and 14.31% respectively this year. The rupee depreciated 8.68%. Crude prices increased and fell drastically in this year. Despite being a bad year, few funds have performed well in their category. Here’s a list of the top performing mutual funds of the year in each category.

Large Cap

Axis Bluechip Fund gave 7.94% return in one year while its benchmark gave only 4.8% return. This fund has managed to beat its benchmark and category in each of the last five years. Based on the ability to grow earnings on a sustainable basis, the fund selects its stocks. It invests 80-100% in large-cap companies and the remaining 0-20% in other companies. With 3-year annualized returns of 13.7% and 5-year returns of 15.3%, these are 2 percentage points higher than the benchmark returns and 2-3 percentage points more than the category returns. A SIP worth ₹5,000 in this fund started 5 years ago is worth ₹4.20 lakhs now.

Large & Midcap

Sundaram Large and Mid Cap Fund gave 2.66% return in one year while its benchmark gave only 1.1% return. The investment strategy of this fund is a mix of top-down and bottom-up approach with a focus on absolute returns with a healthy mix of Multinational Companies’ stocks. It invests 50-60% in large caps and 40-50% in mid and small caps. The fund has outperformed its category by 2-4 percentage points and the benchmark by 3-5 percentage points in the 3 and 5-year returns. The fund gave 10.76% (annualized) return since its inception in 2007. A SIP of ₹5,000 p.m. in this fund started 5 years ago is worth ₹4.34 lakhs now.

Multi-Cap

Axis Focused 25 Fund gave 3.28% return in one year while its benchmark slightly performed better and gave 4.8% return. This fund aims to generate long-term capital appreciation by investing in a concentrated portfolio of equity & equity related instruments of up to 25 companies. It focuses on companies that have the capability to sail through their business cycles without being affected by short-term market volatility. The portfolio gives dual benefits of focus as well as diversification by investing across sectors. The fund has outperformed its category by 3-6 percentage points and its benchmark by 5 percentage points in the 3 and 5-year returns. The fund gave 16.65% return since inception. A SIP of ₹5,000 p.m. in this fund started 5 years ago is worth ₹4.43 lakhs now.

ELSS

Axis Long Term Equity gave 4.99% return in one year while its benchmark gave only 2.1% return. The fund’s investment strategy focuses on buying quality growth stocks. While selecting stocks, the fund looks for superior and scalable businesses, a high return on capital and secular growth. Consistent performance has led to its asset size burgeon from a mere Rs 4 crore at launch to over Rs 17,626 crore. The fund’s three-year returns are about 1 percentage point higher and five year returns 7 percentage points more than the benchmark returns. The fund beat its category by 5-10 percentage points in the 3 and 5-year return category. Its performance in 2011 and 2018, showed an ability to contain losses in a falling market. A SIP of ₹5,000 p.m. in this fund started 5 years ago is worth ₹4.37 lakhs now.

Aggressive Hybrid

Mirae Asset Hybrid Equity gave 3.45% return in one year while its benchmark slightly performed better and gave 3.7% return. The fund allocates 65-80% of its assets to equity and 20-35% of its assets to debt. The fund positions itself as a low-risk alternative to pure equity schemes. It has a diversified portfolio of strong growth companies at reasonable prices. It has the flexibility to invest across any theme or style. For debt part of the portfolio, the company follows a top-down approach for taking interest rate view and sector allocation view. The fund has outperformed its category by 5 percentage points and its benchmark by 2 percentage points in the 3-year returns. The fund gave 10.69% return since inception in 2015. A SIP of ₹5,000 p.m. in this fund started 3 years ago is worth ₹2.18 lakhs now.

Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing. Past performance is not indicative of future returns. Portfolio returns and allocation between equity and debt are estimated based on a number of factors including the user's risk profile, goal horizon and disclosed financial position. Performance of any investment portfolio can neither be predicted nor guaranteed.